Products You May Like
Gold down $9
Gold broke through last week’s low of $1321 as it sinks to a session low and the worst since February 15.
The US dollar is getting a broad lift from rising Treasury yields and month-end flows. Gold isn’t responding to turmoil in India-Pakistan and is at the tail end of a long seasonal run up.
Technically, the break below the Feb 21 low clears the way for a fall back to $1302, especially if we see a close down at these levels. The risk is that the India-Pakistan battle flares up further or a heavier round of risk aversion hits and pushes US yields lower.
I hate to bail on a great trade around month end but the plan was to be long gold on the seasonal upswing and it’s been a wonderful three-month run. I sold 80% of my gold long last week and this break takes me out of the rest. See you next year for the Dec-Feb rally.
This article was originally published by Forexlive.com. Read the original article here.